RECEIVED
JUL 3 0 2015
THE 5 et TF CLERK OF DISTRICT.
IN THE UNITED STATES DISTRICT COURT FOR COURT
‘THE SOUTHERN DISTRICT OF IOWA Sourrem ist ion
UNITED STATES OF AMERICA ) CRIMINAL NO. 4:15-CR-103
)
v, ) Count 1; 18 U.S.C. § 371 (Conspiracy)
)
JESSE R. BENTON, ) Count 2: 18 US.C. §§2.& 1519
(Couns 1,2,3, 4, & 5), ) (Causing False Records)
)
JOHN M. TATE, } Count 3: $2 U.S.C. §§ 30104(a)(1),
(Counts 1, 2, 3, & 4), ) 30104(b)(5)(A), & 30109(4)(1 (AY),
) and 18 U.S.C. § 2 (Causing False
and } Campaign Expenditure Reports)
)
DIMITRIOS N. KESARI, ) Count 4: 18 ULS.C. §§ 2 & 1001¢@\(1)
(w/a Dimitri Kesari) ) False Statements Scheme)
(Counts 1, 2,3, 4, & 6), )
) Count 5: 18 US.C. §§ 2 & 1001(@)2)
Defendants ) False Statements)
)
) Count 6: 18 U.S.C. § 1512(b)(3)
} Obstruction of Justice ~ Witness)
INDICTMENT
THE GRAND JURY CHARGES THAT
GENERAL ALLEGATIONS
At times relevant to this Indictment:
1. Candidate A was a candidate for her political party’s nomination to the Office of
President of the United States in the 2012 election cycle, including the lowa Straw Poll and the
Towa Caucuses.
2. Political Committee 1 was Candidate A’s authorized campaign committee for the
Office of President of the United States.3. Candidate B was a candidate for nomination of the same political party as,
Candidate A to the Office of President of the United States in the 2012 election cycle, including
the Iowa Straw Poll and the lowa Caucuses.
4. Political Committee 2 was Candidate B’s authorized campaign committee for the
Office of President of the United States.
5. Defendant JESSE R. BENTON was a senior official of Political Committee 2.
6. Defendant JOHN M. TATE was a senior official of Political Committee 2.
7. Defendant DIMITRIOS N. KESARI (a/k/a Dimitri Kesari) was a poli
operative of Political Committee 2.
8. Throughout the existence of Political Committee 2, from ia or about May 2011 to
in or about August 2012, defendant KESARI reported to defendants BENTON and TATE, while
defendants BENTON and TATE ran the campaign operations of Candidate B.
9. Kent Leroy Sorenson was an elected Iowa State Senator in the same political
party as Candidate A and Candidate B.
10, The Federal Election Campaign Act of 1971, as amended, Title 52, United States
Code, Sections 30101, et seq., (“Election Act”) (formerly Title 2, United States Code, Sections
431, et seq.), applied to the election of candidates for federal office, including the Office of
President of the United States, as follows:
a. The Election Act required the authorized campaign committee of a candidate
for federal office to accurately report certain expenditures by that committee
to the Federal Election Commission (FEC), the agency and department of the
United States with jurisdiction to enforce the Election Act.
2b. The Election Act required the FEC to publicly report accurate information
provided by campaign committees.
Il. The Federal Bureau of Investigation (FBI) was an agency and department of the
United States with jurisdiction to investigate criminal violations of the Election Act.12,
herein.
13.
COUNT ONE
(Conspiracy)
Paragraphs | through 11 of this Indictment are re-alleged as if fully set forth
From in or about October 2011 to in or about August 2014, in the Southem
District of lowa and elsewhere, the defendants,
JESSE R. BENTON,
JOHN M. TATE, and
DIMITRIOS N. KESARI,
conspired and agreed with each other, with lowa State Senator Kent Leroy Sorenson, and with
others known and unknown to the Grand Jury, to:
a.
b.
Knowingly defraud the United States;
Knowingly cause the concealing, covering up, falsification, and making of false
entries in records, documents, and tangible objects, with the intent to impede obstruct,
and influence the investigation and proper administration of a matier within the
jurisdiction of a department and agency of the United States, and in relation to and
contemplation of such matter and case (in violation of 18 U.S.C. §§ 2 & 1519);
Willfully cause the submission of false expenditure reports of an authorized campaign
committee to the FEC, which concemed no less than $25,000 in a calendar year (in
violation of 52 U.S.C. §§ 30104(a)(1), 30104(b)(5)(A), & 30109(4)(1)(A)Gi) and 18
US.C. § 2); and
Knowingly and willfully falsify, conceal, and cover up by a trick, scheme, and device
a material fact in a matter within the jurisdiction of the executive branch of the
government of the United States (in violation of 18 U.S.C. §§ 2 and 1001(a)(1)).
PURPOSE OF THE CONSPIRACY
14, The purpose of the conspiracy was to defeat the lawful function of the FEC by concealing
and falsifying the records and reports of expenditures of Political Committee 2 so that the FEC
could not reveal to the public that Political Committee 2 paid Senator Sorenson after Senator
4Sorenson switched his political support from Candidate A to Candidate B, and the purpose was
further to conceal the existence, purpose, and acts of the conspiracy.
MANNER AND MEANS
15, The manner and means of the conspiracy included che following:
a. The conspirators would and did negotiate with Senator Sorenson and provide him
with a thing of value and the promise of further payments to secure his defection from
Candidate A to Candidate B.
b. The conspirators would and did cause payments to Senator Sorenson by Political
Committee 2 totaling $73,000 for Senator Sorenson’ political support of Candidate
B, and concealed those payments from Candidate B, the FEC, the FBI, and the public.
¢. The conspirators would and did use two intermediary companies—Film Production
Company W and Senator Sorenson’s company, Grassroots Strategy, Inc. (hereafter
“Grassroots Strategy”}—to conceal the payments to Senator Sorenson by Political
Committee 2
4. The conspirators would and did conceal the payments to Senator Sorenson by
Political Committee 2 by using false invoices from Grassroots Strategy to Film
Production Company W, and from Film Production Company W to Political
Committee 2.
e. The conspirators would and did cause Political Committee 2 to keep false records and
submit false reports to the FEC.
f. The conspirators would and did cause, make, and attempt to transmit false statements
to the public and to the FBI to conceal the conspiracy.
5OVERT ACTS
16. _ In furtherance of the conspiracy, and to accomplish its purpose, the defendants,
JESSE R. BENTON,
JOHN M. TATE, and
DIMITRIOS N. KESARI,
and Iowa State Senator Kent Leroy Sorenson, and others known and unknown to the Grand Jury,
committed the following overt acts, among others, in the Southern District of lowa and
elsewhere.
‘On or about October 31, 2011, BENTON emailed Senator Sorenson and a
representative of Senator Sorenson offering to continue to pay Senator Sorenson
the salary he had been receiving from Political Committee | if Senator Sorenson
would defect from Political Committee 1 to Political Committee 2 by
withdrawing his endorsement of Candidate A for the Office of President of the
United States and endorsing Candidate B instead;
Between on or about November 15,2011 and on or about December 28, 2011,
KESARI spoke several times with Senator Sorenson in an effort to persuade
‘Senator Sorenson to withdraw his endorsement of Candidate A and to endorse
Candidate B;
On or about December 23, 2011, KESARI emailed Senator Sorenson asking
Senator Sorenson to send KESARI a draft press release announcing Senator
Sorenson's decision to endorse Candidate B;On or about December 24, 2011, KESARI emailed Senator Sorenson remi
him to send the draft press release;
On or about December 25, 2011, BENTON, TATE, KESARI, and others edited a
press release written by Senator Sorenson announcing his decision to endorse
Candidate B;
On or about December 26, 2011, KESARI gave Senator Sorenson a check in the
amount of $25,000 drawn on the account of Company X, for which KESARI was
the registered agent, in an effort to persuade Senator Sorenson to endorse
Candidate B;
On or about December 28, 2011, Senator Sorenson appeared at a campaign event
held by Political Committee 2 and announced at that event that he was endorsing
Candidate B for the Office of President of the United States;
On or about December 28, 2011, BENTON, TATE, and KESARI began making
arrangements for Senator Sorenson to be paid $25,000 by wire transfer from
Political Committee 2 to pay Senator Sorenson without using the check that
KESARI gave ¢o Senator Sorenson, which Senator Sorenson held and never
deposited;
On or about December 29, 2011, in response to a public allegation from
Candidate A that Senator Sorenson was offered money by Political Committee 2
to endorse Candidate B, BENTON, TATE, and KESARI caused Political
Committee 2 to issue a statement from Senator Sorenson responding to Candidate
A’s allegations by denying that Political Committee 2 paid Senator Sorenson, and
7stating, “Financial reports come out in just days which will prove what I’m saying
is true”
On or about December 29, 2011, BENTON emailed KESARI, TATE and a
financial staffer of Political Committee 2 telling them to hold “for a couple days”
the wire transfer that had been requested to pay Senator Sorenson;
On or about December 29, 2011, TATE responded to BENTON’S email,
affirming BENTON’s decision to hold the wire transfer to Senator Sorenson;
‘On or about December 29, 2011 KESARI responded to BENTON’S and TATE’S
emails temporarily holding the wire transfer to Senator Sorenson, explaining, “We
are holding till after the filing”;
On or about December 29, 2011, a financial staffer of Political Committee 2 noted
in an email report of expenses “$25k ~ Dimitri’s mystery wire,” to which TATE
responded “There will not be the 25k dimitri wire for now. Wipe it off the
books”;
On or about December 29, 2011, Senator Sorenson gave an interview with a
national broadcast reporter in which Senator Sorenson denied that he had been
paid by Political Committee 2 to endorse Candidate B, and stated that Political
Committee 2’s disclosure of its “expenditures” on its “financial reports” would
show that Senator Sorenson was not paid by Political Committee 2;
In or about January 2012 and in or about February 2012, BENTON, TATE, and
KESARI made specific arrangements for Senator Sorenson to be paid by Political
Committee 2;On or about January 24, 2012, Senator Sorenson prepared an invoice from.
Grassroots Strategy to Film Production Company W in the amount of $33,000;
On or about February 5, 2012, KESARI caused Film Production Company W to
send an invoice to Political Committee 2 in the amount of $38,125, to cover the
payment of the invoice from Grassroots Strategy plus other expenses;
On or about February 8, 2012, KESARI caused Political Committee 2 to pay Film
(0 a financial staffer of Political
Production Company W $38,125 by em:
Committee 2;
On or about February 9, 2012, Senator Sorenson's company Grassroots Strategy
received a payment from Film Production Company W in the amount of $33,000;
On or about February 22, 2012, BENTON, TATE, and KESARI caused Political
Committee 2 to list the February 8, 2012, expenditure of $38,125 on a campaign
expense report under “Audio/Visual Expenses,” rather than as a payment to
Senator Sorenson;
On or about April 20, 2012, BENTON, TATE, and KESARI caused Political
Committee 2 to report the February 8, 2012, expenditure of $38,125 in a filing
with the FEC as a payment to Film Production Company W for
“AUDIO/VISUAL EXPENSES,” omitting any reference to Senator Sorenson or
Grassroots Strategy;
On or about March 4, 2012, Senator Sorenson sent KESARI an invoice from
Grasstoots Strategy to Film Production Company W in the amount of $8,000;bb.
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On or about March 21, 2012, KESARI caused Film Production Company W to
send an invoice to Political Committee 2 in the amount of $8,850;
On or about March 26, 2012, Senator Sorenson sent KESARI an invoice from
Grassroots Strategy to Film Production Company W in the amount of $16,000;
On or about March 26, 2012, KESARI caused Film Production Company W to
send an invoice to Political Committee 2 in the amount of $8,850;
On or about April 3, 2012, TATE approved the payment by Political Committee 2
of $16,000 to Senator Sorenson via the March 21, 2012, and March 26, 2012,
invoices from Film Production Company W;
On or about April 3, 2012, KESARI caused Political Committee 2 to pay Film
Production Company W $17,700 by email to a financial staffer of Political
Committee 2;
On or about July 18, 2012, BENTON, TATE, and KESARI caused Political
Committee 2 to report the April 3, 2012, expenditure of $17,700 in a filing with
the FEC as a payment to Film Production Company W for “AUDIO/VISUAL,
EXPENS
omitting any reference to Senator Sorenson or Grassroots Strategy;
On or about April 9, 2012, Senator Sorenson’s company Grassroots Strategy
received a payment from Film Production Company W in the amount of $16,000;
On or about May 2, 2012, Senator Sorenson sent KESARI and Film Production
Company W an invoice from Grassroots Strategy to Film Production Company W
for $8,000;
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On or about May 2, 2012, KESARI caused Film Production Company W to send
an invoice to Political Committee 2 in the amount of $8,850;
On or about May 2, 2012, KESARI forwarded the invoice from Film Production
Company W to BENTON with a note reading, “Kent’s bill. Pay?”
On or about May 2, 2012, BENTON approved the payment by Political
Committee 2 of the May 2, 2012 invoice from Film Production Company W;
On or about May 2, 2012, KESARI caused Political Committee 2 to pay Film
Production Company W $8,850 by email to a financial staffer of Political
Committee 2;
On or about July 18, 2012, BENTON, TATE, and KESARI caused Political
Committee 2 to report the May 2, 2012, expenditure of $8,850 in a filing with the
FEC as a payment to Film Production Company W for “AUDIO/VISUAL
EXPENSES,” omitting any reference to Senator Sorenson or Grassroots Strategy;
On or about May 4, 2012, Senator Sorenson’s company Grassroots Strategy
received a payment from Film Production Company W in the amount of $8,000;
On of about May 21, 2012, Senator Sorenson sent invoices from Grassroots
Strategy to Film Production Company W totaling $16,000;
On or about May 24, 2012, KESARI caused Film Production Company W to send
an invoice to Political Committee 2 in the amount of $8,850;
On or about May 29, 2012, TATE approved the payment by Political Committee
2 of Senator Sorenson via Film Production Company W’s invoice in the amount
of $8,850;
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On or about May 29, 2012, KESARI caused Political Committee 2 to pay Film
Production Company W $8,850 by email to a financial staffer of Political
Committee 2;
On or about July 18, 2012, BENTON, TATE, and KESARI caused Political
Committee 2 to report the expenditure on May 29, 2012, of $8,850 in a filing with
the FEC as a payment to Film Production Company W for “AUDIO/VISUAL,
EXPENSES,” omitting any reference to Senator Sorenson or Grassroots Strategy;
On or about June 12, 2012, Senator Sorenson’s company Grassroots Strategy
received a payment from Film Production Company W in the amount of $8,000;
On or about June 18, 2012, KESARI caused Film Production Company W to send
an invoice to Political Committee 2 in the amount of $8,850;
On or about June 25, 2012, TATE emailed KESARI regarding Film Production
Company W’s invoice, “What is this? What is it for, who is it? Why do we
keep paying them? The last payment was supposedly the last”;
On or about June 25, 2012, KESARI responded to TATE’s email, “This the last
payment for kent Sorenson jsic]. ‘The deal jesse agreed to with kent”;
On or about June 25, 2012, KESARI sent a second response to TATE’s email, “Is
[sic] was for 6 months”;
On or about June 25, 2012, TATE approved the payment of Senator Sorenson via
Film Production Company W’s invoice;yy.
Between on or about June 25, 2012, and on or about June 27, 2012, KESARI
caused Political Committee 2 to pay Film Production Company W $8,850 by
‘email to a financial staffer of Political Committee 2;
On or about September 5, 2012, BENTON, TATE, and KESARI caused Political
Committee 2 to report the June 27, 2012, expenditure of $8,850 in a filing with
the FEC as a payment to Film Production Company W for “AUDIO/VISUAL
EXPENSES,” omitting any reference to Senator Sorenson or Grassroots Strategy;
On or about July 27, 2012, Senator Sorenson’s company Grassroots Strategy
received a payment from Film Production Company W in the amount of $8,000;
In or about September 2015, shortly after media reports referencing ongoing
investigations by the FBI and FEC of the payments to Sorenson by Political
Committee B, KESARI flew to Omaha, Nebraska, backtracked to Senator
Sorenson’s home in Iowa, required that he and Senator Sorenson show each other
that neither was wearing a recording device, and then asked that Senator Sorenson
either retum to KESARI or alter the $25,000 check that KESARI previously gave
to Senator Sorenson on or about December 26, 2012, which Senator Sorenson
refuused to do;
On or about September 19, 2013, at a deposition taken in connection with an
investigation by the Iowa State Senate into the circumstances surrounding Senator
Sorenson’s endorsement of Candidate B and payment by Political Committee 2,
Senator Sorenson falsely testified under oath that he had never been paid by
Politicai Committee 1 or by Political Committee 2;
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On or about July 21, 2014, and on or about July 22, 2014, in a proffer session
the FBI, BENTON falsely stated that there were no payments from Political
Committee 2 to Senator Sorenson, either directly or through another entity;
On or about July 21, 2014, and on or about July 22, 2014, in a proffer session
the FBI, BENTON falsely stated that he was not aware of any payments
from Political Committee 2 to Senator Sorenson either directly or through another
entity;
On or about July 21, 2014, in a proffer session with the FBI, in response to
questioning about whether Political Committee 2 paid Senator Sorenson through a
third party, BENTON falsely denied that Senator Sorenson was paid by Political
Committee 2 either directly o through a third party, saying, “
hairs: Sorenson was not getting paid”;
On or about July 22, 2014, in a proffer session with the FBI, BENTON falsely
stated that there was no way Senator Sorenson would be paid after BENTON had
told the press that Senator Sorenson was not being paid by Political Committee 2;
On or about July 22, 2014, in a proffer session with the FBI, BENTON falsely
stated that Senator Sorenson had not been paid by Political Committee 2 because
once BENTON said that Senator Sorenson had not been paid by Political
Committee 2, BENTON “could not just lie to the press” and arrange for Senator
Sorenson to be paid by Political Committee 2 as the payment “would be on an
FEC report”;
14ff On or about August 19, 2014, in a proffer session with the FBI, TATE falsely
stated that there were no payments from Political Committee 2 to Senator
Sorenson, either directly or through another entity;
ggg. On or about August 19, 2014, in a proffer session with the FBI, TATE falsely
stated that he was not aware of any payments from Political Committee 2 to
Senator Sorenson, either directly or through another entity.
This is a violation of Title 18 United States Code, Section 371.
15COUNT TWO
(Causing False Records)
17. Paragraphs 1 through 11 of this Indictment are re-alleged as if fully set forth
herein,
18, From in or about February 2012 to in or about August 2012, in the Southern
District of lowa and elsewhere, the defendants,
JESSE R. BENTON,
JOHN M. TATE, and
DIMITRIOS N. KESARI,
aided and abetted by each other and by Iowa State Senator Kent Leroy Sorenson, with the intent
to impede, obstruct, and influence, and in relation to and contemplation of, the investigation and
proper administration of matters within the jurisdiction of departments and agencies of the
United States, knowingly concealed, covered up, falsified, and made a false entry in a record,
document and tangible object, to wit, causing Political Committee 2 to falsely record payments
to Film Production Company W as audio/visual expenses that were in fact disbursements to Iowa
State Senator Kent Leroy Sorenson, and which falsification the defendants well knew and
contemplated were related to the proper administration of Political Committee 2’s required
disclosures under the Election Act by the FEC.
‘This is a violation of Title 18 United States Code, Sections 2 and 1519.
16COUNT THREE
(Causing False Campaign Contribution Reports)
19, Paragraphs 1 through 11 of this Indictment are re-alleged as if fully set forth
herein,
20. From in or about February 2012 to in or about August 2012, in the Southern
District of Iowa and elsewhere, the defendants,
JESSE R. BENTON,
JOHN M. TATE, and
DIMITRIOS N. KESARI,
aided and abetted by each other and by Iowa State Senator Kent Leory Sorenson, willfully
caused the authorized campaign committee of a candidate for the Office of President of the
United States to falsely report to the FEC the disbursements to persons to whom that committee
made expenditures over $200, to wit causing Political Committee 2 to report te the FEC
disbursements to Film Production Company W as audio/visual expenses that were in fact
disbursements to lowa State Senator Kent Leroy Sorenson aggregating $25,000 and more in
calendar year 2012.
This is a vic tle 52, United States Code, Sections 30104(a)(1), 30104(b\'5)(A),
lation of 1
& 30109(4)(1)(A)(i), and Title 18 United States Code, Section 2.
7COUNT FOUR
(False Statements Scheme)
21. Paragraphs 1 through 11 of this In
iment are re-alleged as if fully set forth
herein,
22. From in or about February 2012 to in or about August 2012, in the Southern
District of lowa and elsewhere, the defendants,
JESSE R. BENTON,
JOHN M. TATE, and
DIMITRIOS N. KESARI,
aided and abetted by each other and by Iowa State Senator Kent Leroy Sorenson, kno\
ely and
willfully falsified, concealed, and covered up by a trick, scheme, and device a material fact in a
matter within the jurisdiction of the executive branch of the government of the United States, to
wit using false invoices to cause Political Committee 2 to report to the FEC disbursements to
Film Production Compeny W as audio/visual expenses that were in fact disbursements to Iowa
State Senator Kent Leroy Sorenson.
This is a violation of Title 18 United States Code, Sections 2 & 1001(a)(1).
18COUNT FIVE
(False Statements to Law Enforcement)
23. Paragraphs 1 through 11 of this Indictment are re-alleged as if fully set forth
herein.
24, Onor about July 21, 2014 and July 22, 2014, in the Southern District of Towa, the
defendant,
JESSE R. BENTON,
knowingly and willfully made a materially false, fictitious, and fraudulent statement or
representation in a matter within the jurisdiction of the executive branch of the govemment of
the United States, to wit, falsely telling Special Agents of the FBI that Towa State Senator Kent
Leroy Sorenson was not paid by Political Committee 2 either directly or through another entity
and that BENTON was not aware of any payments to Iowa State Senator Kent Leroy Sorenson
from Political Committee 2 either directly or through another entity,
This is a violation of Title 18 United States Code, Sections 2 & 1001(a)(2)..
19COUNT SIX
‘(Obstruction of Justice ~ Law Enforcement Officers and Courts)
25. Paragraphs | through 11 of this Indictment are re-alleged as if fully set forth
herein,
26. Inor about August 2014, in the Southern District of lowa, the defendant,
DIMITRIOS N. KESARI,
corruptly persuaded another person, and attempted to corruptly persuade another person, with the
intent to hinder, delay and prevent the communication to law enforcement officers and judges of
the United States information related to the commission and possible commission of a federal
offense, to wit, he corruptly persuaded and attempted to corruptly persuade Iowa State Senator
Kent Leroy Sorenson to withhold from discovery by federal law enforcement officers and courts
information related to payments by Political Committee 2.
This is a violation of Title 18 United States Code, Section 1512(b)(3).
A TRUE BILL.
ish
JREPERSON,
RAYMOND N. HULSER
Chief
Public Integrity Section, Criminal Division
United States Department of Justice
By:
Richard C. Pilger
Director, Election Crimes Branch
Jonathan I. Kravis
Trial Attorney
Public Integrity Section, Criminal Division
United States Department of Justice
20